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Section 28 of the Mediation Act, 2023: challenge to mediated settlement agreement

A party may apply to the court or tribunal of competent jurisdiction to challenge a mediated settlement agreement only on four grounds: fraud, corruption, impersonation, or that...

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Published
October 2, 2026
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Oct 3, 2026
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Last updated: October 2026Verified against: Government sources

Section 28 lets a party challenge a mediated settlement agreement by an application to the court or tribunal of competent jurisdiction, but only on four grounds: fraud, corruption, impersonation, or mediation of a matter not fit for mediation under section 6. The application must be made within ninety days, with a further ninety days on sufficient cause.

Section 28(1): who may challenge and where

Section 28(1) reads "Notwithstanding anything contained in any other law for the time being in force, in any case in which the mediated settlement agreement is arrived at between the parties and is sought to be challenged by either of the parties, such party may file an application before the court or tribunal of competent jurisdiction." The overriding words ("notwithstanding anything contained in any other law") make this the route for a challenge. The right belongs to "either of the parties", and the forum is "the court or tribunal of competent jurisdiction". Section 13 treats a mediation held elsewhere or online as undertaken within that jurisdiction for the purpose of challenge; see our article on sections 13 and 14.

If you want to challenge a settlement, or expect the other side to, get the grounds and dates reviewed immediately; our legal dispute resolution team can assist with the application.

Section 28(2): the four grounds

Section 28(2) says a mediated settlement agreement "may be challenged only on all or any of the following grounds". The word "only" closes the list.

ClauseGroundNotes
(i)FraudThe Act does not define it
(ii)CorruptionThe Act does not define it
(iii)ImpersonationFor example, a person signing in another's name
(iv)The mediation was conducted in disputes or matters not fit for mediation under section 6See the First Schedule

The Act does not define fraud, corruption or impersonation, and no case law is discussed here. The text does not list "mistake", "unfairness of the bargain" or "change of mind" as grounds. A party that merely regrets the settlement has no ground under this sub-section. Note also that a settlement that is void under the Indian Contract Act, 1872 is not a "lawful settlement agreement" under the Explanation to section 19(1); see our article on section 19.

Ground (iv) links to section 6 and the First Schedule, which list 13 indicative kinds of disputes or matters not fit for mediation, such as criminal prosecutions, tax disputes, land acquisition and regulator proceedings. A mediation of those matters can be challenged, except where the first proviso to section 6(1) lets a court refer compoundable offences; see our article on section 6.

Section 28(3): ninety days, and a further ninety

Section 28(3) says "An application for challenging the mediated settlement agreement shall not be made after ninety days have elapsed from the date on which the party making that application has received the copy of mediated settlement agreement under sub-section (3) of section 19".

The proviso says "if the court or tribunal, as the case may be, is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of ninety days, it may entertain the application within a further period of ninety days".

StagePeriodCondition
Main periodNinety days from the date the applicant received the copy under section 19(3)None beyond receipt
Extended periodA further ninety daysThe court or tribunal is satisfied that sufficient cause prevented the applicant within the main period
Outer limitOne hundred and eighty days in all from receiptPrinted as ninety days plus a further ninety days

Points to note:

  • The clock runs from the applicant's own receipt of the copy, which is why the date of receipt under section 19(3) should be recorded for each party.
  • The extension is for the court or tribunal to allow; the word is "may entertain".
  • The proviso allows no more than ninety further days, and the text mentions no other extension.
  • Nothing in section 28(3) says that the Limitation Act, 1963 applies to the application beyond this period.

Challenge and enforcement together

Section 27(2) makes enforcement "subject to the provisions of section 28". A party resisting enforcement can raise the grounds in section 28(2), but the time limit in section 28(3) applies to the application for challenge. The Act does not say what happens to enforcement while a challenge is pending, and the text consulted gives no stay provision. See our article on enforcement.

Registration under section 20 does not affect the right to challenge; the Explanation to section 20(1) says so. The registration window and the challenge window are different clocks; see our article on registration.

Confidentiality in a challenge

A challenge on fraud or impersonation raises the question of what evidence can be used. The Explanation to section 22 lets the settlement agreement itself be disclosed where necessary for challenge, while the talks that led to it remain protected under sections 22 and 23, subject to the proviso to section 23(1) and the three exceptions in section 23(2). See our article on section 23. The Act does not say how a challenge on fraud is to be proved without using protected material, and the text consulted is silent.

Related commercial route

For pre-litigation mediation of commercial disputes, the substituted section 12A of the Commercial Courts Act (Ninth Schedule) says the mediated settlement agreement "shall be dealt with in accordance with the provisions of sections 27 and 28" of this Act. Commencement is by notification, and the date is not in the text consulted. See our article on that section.

A worked example

Malik Chemicals and Singh Traders sign a settlement and the mediator authenticates it. Singh Traders receives its copy on 10 January. It later finds that the signature on behalf of Malik Chemicals was made by a person who had no authority and was passing himself off as a director. Impersonation is a ground under section 28(2)(iii). Singh Traders' ninety days run from 10 January. If it was prevented by sufficient cause from filing in time, the court or tribunal may entertain the application within a further ninety days. The names and dates are invented for illustration.

Practical checklist

  1. Record the date each party receives the copy under section 19(3).
  2. Match the facts to one of the four grounds before filing.
  3. Count ninety days and diarise the date.
  4. If late, prepare a sufficient-cause statement for the further ninety days.
  5. File before the court or tribunal of competent jurisdiction.

Need help with a challenge to a settlement?

The grounds are narrow and the clock is short, so early advice matters on either side of the table. We can assess the grounds and prepare the application or the reply through our legal dispute resolution service.

Key takeaways

  • A challenge lies only on fraud, corruption, impersonation, or mediation of a matter not fit for mediation under section 6 (section 28(2)).
  • The application goes to the court or tribunal of competent jurisdiction (section 28(1)).
  • The period is ninety days from receipt of the copy under section 19(3), with a further ninety days on sufficient cause (section 28(3)).
  • Registration does not affect the right to challenge.
  • The Act comes into force by notification; the date is not in the text consulted.

Read next

Disclaimer: Based on the Mediation Act, 2023 as enacted and published in the Gazette of India on 15 September 2023, as consulted on 2 October 2026. The Act comes into force by notification; the commencement of each provision, the rules and the regulations should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 28

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What are the grounds to challenge a mediated settlement agreement?

Fraud, corruption, impersonation, and mediation conducted in disputes or matters not fit for mediation under section 6.

Can we challenge because the deal was unfair?

Section 28(2) says "only" on the four grounds. Unfairness is not listed.

The right form filed late and the wrong form filed on time cause the same trouble — file the right one on time.

— TaxClue Compliance Desk

Section 28: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Fraud, corruption, impersonation, and mediation conducted in disputes or matters not fit for mediation under section 6.

Section 28(2) says "only" on the four grounds. Unfairness is not listed.

Ninety days from the date you received the copy under section 19(3), with a further ninety days if the court or tribunal is satisfied of sufficient cause.

The court or tribunal of competent jurisdiction.

No. The Explanation to section 20(1) says registration does not affect the right to challenge under section 28.

The text consulted has no stay provision; section 27(2) makes enforcement subject to section 28.